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Shares Rally World-Wide as Fed
Leaves Interest Rates Unchanged

By

Sara WebbStaff Reporter of The Wall Street Journal

Updated May 21, 1998 1:13 a.m. ET

Overseas stock markets rallied in relief after the Federal Reserve left U.S. interest rates unchanged Tuesday, and as the political situation in Indonesia remained relatively calm amid news reports out of Jakarta that President Suharto planned to step down.

President Suharto announced his resignation Thursday morning. His successor, Vice President B.J. Habibie, was sworn in immediately. The Jakarta stock market was closed Thursday, but stocks rose sharply in Tokyo after the announcement.